TEL AVIV (Reuters) - The head of an Israeli-backed electric
car project estimated on Sunday that its partner, the
Renault-Nissan alliance, would likely invest $500 million to $1
billion in the swappable-battery electric cars.

"This is the cost for a three-year car program," Shai
Agassi, the founder and chief executive of California-based
Project Better Place, said on the sidelines of a news
conference to introduce the electric car prototype.

Renault and Nissan signed a deal with Better Place in
January to begin mass producing electric cars as a part of a
project to develop alternative energy sources and slash oil
dependency.

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Better Place will build the first electric grids in Israel
and Denmark, with initial deployment slated for 2010.

Denmark's DONG Energy recently signed a letter of intent
with Better Place to introduce the electric cars to the
Scandinavian country, where the batteries will be charged using
wind power.

DONG Energy is the world's largest offshore wind power
operator, with several wind farms in Denmark and Britain.

Agassi said that up to 20 percent of Denmark's electricity
production comes from wind but that 7 percent was not being
used -- enough to power every car in Scandinavia.

A few dozen cars will be available in Israel later in 2008,
mainly for demonstration.

In Israel, much of the electricity is generated using
fossil fuels such as coal, though natural gas is now being
introduced. But Agassi said the plan was to use solar energy
generated in Israel's Negev Desert to power the batteries.

"If all of Israel traveled by electric cars, you would need
to add 6 percent of electricity production," Agassi said.

Renault will provide Better Place with vehicles while
Nissan, through its joint venture with NEC, has created a
lithium-ion battery pack. The project will also use batteries
made by A123 Systems.

The batteries, weighing about 200 kg, will have a range of
160 to 200 km before needing to be recharged or swapped.

Agassi said the project was open to anyone who wants to
join.

The initial $200 million investment in Better Place is led
by holding company Israel Corp, and includes Morgan Stanley,
venture capital firm Vantage Point and a group of private
investors.

500,000 CHARGING SPOTS

Better Place in Israel will deploy more than 500,000
charging spots, including at the homes and offices of its
clients, and hundreds of battery exchange stations.

Moshe Kaplinsky, CEO of Better Place Israel, said a study
conducted by Israeli consultancy and research institute
Geocartography Knowledge Group, showed that two thirds of the
public have a positive opinion of electric cars.

"We are not operating in a climate of indifference. The
Israeli public is interested in what we are doing," Kaplinsky
said. "We need to stop our dependence on oil."

In Israel, where most of its oil comes from Russia, 1.2
million households own cars and 210,000 would consider
purchasing an electric car, the study showed.

Agassi said Better Place was in discussions in other
countries to introduce similar projects.

European countries are interested in Better Place for
environmental reasons while Asia is seeking to reduce
pollution, and Africa sees huge potential to generate solar
energy in the Sahara Desert, Agassi said.